DeMers v. Federal Land Bank of Omaha

Dennis and Shirley DeMers (debtors) appeal from the district court’s1 order concluding that the confirmation of a Chapter 11 plan providing for the redemption of real property by making payments over time does not constitute redemption within the meaning of S.D.Codified Laws Ann. § 21-52-14. We affirm.

The debtors farmed 2,000 acres in Tripp County, South Dakota. Federal Land Bank of Omaha (FLB) obtained a perfected first mortgage lien on 1,200 acres of the debtors’ property. After the debtors defaulted on the loan, FLB commenced a foreclosure action, obtaining a judgment and decree of…